Calculating Annuity Present Value An investment offers $4,100 per year for 15 years, with the first payment occurring one year from now. If the required return is 10 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever? Calculating Annuity Cash Flows If you put up $20,000 today in exchange for a 8.25 percent, 12-year annuity, what will the annual cash flow be?

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

III. Valuation of Future Cash Flows

6. Discounted Cash Flow Valuation

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